US-based on-demand delivery service provider Favor will offer automatic commercial automotive liability insurance coverage to its 80,000 contract delivery drivers, known as Runners.

The insurance coverage, which will be offered free of cost to delivery drivers, will provide commercial liability protection to Runners in case they meet with an accident while on an active Favor delivery.

Additionally, the new insurance plan offers help for damages to a Runner’s vehicle, more than the coverage provided by their personal auto insurance.

The latest offering further adds to Favor product line that includes health, dental, vision, and life insurance, among others.

Favor president Steven Pho said: “This insurance immediately provides Runners with additional protection for every Favor delivery.

“We designed this coverage without any hurdles for the Runner — no required signup or enrolment period, or any fees, premiums or copays. Every delivery is now automatically covered on the Favor platform.”

Favor, which was set up in 2013 in Texas, has 75,000 Runners onboard its delivery platform.

At present, Favor provides its services in more than 130 Texas cities including Bryan-College Station, Corpus Christi, Abilene, Austin, Beaumont-Port Arthur, Dallas-Fort Worth-Arlington, among others.

Last month, ride-hailing marketplace Gridwise teamed up with health insurance provider Decent to offer affordable health insurance coverages to rideshare drivers.

In September, Uber unveiled a plan to offer insurance coverage of up to INR500,000 ($7097) to riders in case they meet with an accident.